News
R1 Billion Fund Launched to Invest in "Cleantech" Companies and Projects in Southern Africa
30/09/08
Inspired Evolution Investment Management is delighted to announce the launch of South Africa’s first ever clean technology (‘cleantech’) investment fund: The Evolution One Fund is a 10 year private equity fund targeted to grow to ZAR 1 billion by mid-July 2009. The fund has conducted its first close in July 2008 at ZAR 400 million raised from four core international investors: IFC (a member of the World Bank Group), Castleway Properties (advised by Consensus Business Group), the Swiss Investment fund for Emerging Markets (Sifem) and the Finnish Fund for Industrial Cooperation (Finnfund). The fund is currently being marketed to investors in southern and South Africa and plans to make its first investments in 2008.
Cleantech spans many industries: clean energy generation; water purification; waste management; and efficient production technology. Evolution One’s investment philosophy is based on the concept of additionality whereby accelerated development and use of cleantech products, services and processes not only provide superior performance at lower costs but also reduce environmental and climate change impacts, thereby promoting mutually reinforcing benefits for society.
Global investment activity in the sector is already significant, estimated to be US$ 148.4 billion in 2007 (source: New Energy Finance) and is forecast to exceed US$ 226 billion by 2016 from private equity and venture capital alone. High growth opportunities are emerging in the agribusiness, cleaner production, pollution control, waste management and transportation sectors, as well as the core areas of energy and water. However, to date, no fund has focused on the role of cleantech in Africa where environmental and social issues make it a vitally important driver of the economic development of the region.
The Evolution One Fund will make around 10 to 15 investments over a period of three to five years across the whole SADC region. The fund will focus on cleaner energy and the environment – aiming to generate an enhanced annual internal rate of return by focusing on the following eight sectors and sub-sectors:
• Cleaner energy generation and energy efficiency
• Cleaner production technologies and processes
• Air quality and emissions control
• Water quality and management
• Waste management
• Agribusiness and forestry
• Natural products, organics and natural health
• Sustainable buildings and environmental real estate
In all cases, particular attention will be paid to small, medium and micro-enterprises; broad-based black economic empowerment; and transformation benefits of underlying investment projects.
Dr Zuko Kubukeli, Executive Director of Inspired Evolution Investment Management said, “Cleantech provides cross-sector opportunities to make more sustainable investments without foregoing the traditional returns of private equity. Having raised ZAR 400 million from our core international investors, we are now targeting a second round of international and local investors. We are single-mindedly focusing on building strategic partnerships and on sourcing proprietary and appropriate technologies for application within the SADC region across a variety of investment projects.”
Mr Vincent Tchenguiz, Chairman of Consensus Business Group who are the advisor to one of the cornerstone investors and a founding partner in Inspired Evolution Investment Management said: “Consensus Business Group has had a strategic focus on the global environmental sector for a number of years. We have developed innovative business models to deliver strong financial returns and to add strategic value to our investee companies. We look forward to working with Evolution One Fund – we are confident that our long-term, wide ranging experience in the sector will serve to benefit the Fund.”
Ms Haydee Celaya, IFC Director for Private Equity and Investment Funds, said, “IFC’s investment in Evolution One Fund is in line with the World Bank’s overall strategy to support projects investing in technologies to combat climate change. This investment demonstrates IFC’s commitment to be a pioneer and a leader in the clean energy and climate change sectors in southern Africa.”
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For further information please contact:
FD Beachhead
Dani Cohen 021 487 9000 / 082 897 0443 / dani.cohen@fd.com
Inspired Evolution Investment Management
Mr Christopher Clarke
Telephone: +27 21 702 1290
Mobile: +27 82 496 0522
Dr Zuko Kubukeli
Telephone: +27 11 883 8036
Mobile: +27 82 925 2966
NOTES TO EDITORS
Inspired Evolution Investment Management is a specialized, boutique investment management company and authorised financial services provider established by Consensus Business Group, Pan-African Capital Holdings, Alluvia Group and Capital Evolution, as its four founding partners. Inspired Evolution Investment Management has first mover advantage to lead cleantech investing in emerging markets in southern Africa. The investment team of nine, including six principals, a chief investment officer and two analysts, is based in South Africa and the UK and has over 60 years collective track record in sustainability, private equity and venture capital investing. This experience includes numerous cleantech market segments such as solar, wind, fuel cells, biogas, biofuels, energy efficiency, waste and water investments.
The team is complemented by an international group of environment and cleantech project financiers and analysts through Consensus Business Group (www.cbg.uk.com) who have advised on over US$ 700 million worth of investments into cleantech, new energy and environmental projects worldwide.
Further information is available on www.inspiredevolution.co.za.
